A research grant, total $100K for 2 years starting April 2012, is funded and I am preparing for the project. I was celebrating for a while. Now is the time to get serious and get it started. It is taxpayer's money and I am bound to produce results and fulfill this government contract.
Here is a brief and simplified explanation about how biomedical research funding works in university settings in the US.
Usually a lead researcher (called Principal Investigator PI, usually with Professor/Associate professor/Assistant Professor title) makes plans for a research project. He sets everything up---provides his expertise, hires people if necessary, buys equipments and reagents, and conducts the project. He has some initial assistance to conduct research from his university as a part of start-up fund. But he doesn't want to spend the money quickly or totally. The money is time-stamped and with string, so to speak. He is expected to obtain outside money (i.e. grant) to conduct his research within a certain time after he joins the university. A part (or all) of his own salary is expected to be paid out of the extramural money afterwards.
When he asks grant from outside source, he also asks indirect cost, money that goes to his university. From his standpoint, it is like paying rent to the university. In return the university provides a place to conduct research (lab), associated necessities (heat, electricity, water, common research equipments, and other supports) and administrative support (grant officers). Other researchers in the university are his assets as well. He can set up collaboration with them for example.
From university's standpoint, a researcher who has more grant money is earning more money for them, and he is very welcome. His political power would increase as well.
Not all universities focus on research. Research, teaching and administrative work (for example, serving in a committee) are three major duties for people with Professor/Associate professor/Assistant Professor title, and expected ratio of these duties varies depending on the place. A community collage may be more teaching-oriented than some research-oriented universities.
The bottom line in this system is this: "you make your own money to conduct your research". For scientific research, raising money=getting grant is critical. Otherwise, you'll be out of business, sadly. Nowadays the success rate for the NIH (National Institutes of Health) grant application is about 10% or less. Many researchers are feeling the heat.
As the government is the biggest funding agency, budget tightening has direct impact on the nation's research activity. Changes in the direction of funding can kill entire research field easily.
Nowadays doing science as a PI is running a business. Your operation may be small, may be big. But you all have to think long and hard about survival of your business.
